AirAsia Sells 32.67% Stake in Indian JV to Tata Sons for $37.7 Million
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Malaysian carrier AirAsia on Tuesday said it has sold its 32.67 per cent stake in AirAsia India to Tata Sons for $37.66 million (Rs 276.10 crore), bringing down its shareholding in the airline to about 16.33 per cent.
"The Board of Directors of AirAsia (“Directors"), wishes to announce that its wholly owned subsidiary, AAIL (AirAsia (India Limited), has on 29 December 2020 executed a Share Purchase Agreement (“SPA") with Tata Sons Private Limited (“TSL") to sell AAIL’s equity interest of 32.67% in AAI comprising 490,000,000 ordinary shares of INR 10 each, which is equivalent to 32.67% of the issued and outstanding shares of AAI, to TSL for a total consideration sum ("Purchase Consideration") of $37,660,000," the airline said in a filing.
Prior to the transaction, AirAsia Berhad held a 49 per cent stake in AirAsia India, while Tata Sons held 51 per cent.
"In addition, there will also be a Put Option exercisable by AAIL in two tranches, with the first tranche being exercisable from 1 March, 2022, until 30 May, 2022, and the second tranche being exercisable from 1 October, 2022, to 31 December, 2022," AirAsia Berhad said in the stock exchange filing.
"This Transaction will reduce cash burn of the Company in the short term and allow AirAsia to concentrate on recovery of its key ASEAN markets in Malaysia, Thailand, Indonesia and the Philippines in the long run," the filing read.